Vol. 510 No. 3
28 Mr. O'Shea asked the Minister for Agriculture, Food and Rural Development when compensation will be paid to those taking advantage of the farm retirement scheme who have suffered losses as a result of the introduction of the euro; and if he will make a statement on the matter. [22428/99]
The Council of Ministers has agreed that compensation will be paid over the next three years to participants in the schemes affected by reductions arising from the introduction of the euro.
In so far as the scheme of early retirement from farming is concerned, full compensation, with 100 per cent funding by the EU, will be payable for the reduction in 1999 pensions to participants who joined the scheme prior to 1998. Approval of the EU Commission is necessary before compensation will be paid. It is hoped the Commission will give the necessary approval by the end of November. Once such a decision is received, payment will issue as soon as possible. Two further tranches of compensation at reduced levels will be paid.
This is an important structural scheme from a socio-economic viewpoint. More than one quarter of our farmers are over 65 years of age. Why has it taken so long to pay money to farmers who lost out as a result of the introduction of the euro? Why did it take 11 months for this decision to be made when the Council of Ministers approved it seven or eight months ago? Are we the poodles of Europe? Why can other countries implement measures approved at Council of Ministers level? Are we the whipping boys of Europe? How many farmers have been affected by the introduction of the euro? Have they lost up to £45 per month, which is £11 or £12 per week? Has it had any impact on the numbers of farmers who want to participate in the farm retirement scheme? I cannot understand why it has taken so long for EU money to reach the pockets of farmers.
The farm retirement pension has been successful in Ireland. We have taken up this scheme more than any other member state. I have had negotiations with Commissioner Fischler and the Council of Ministers to try to improve this scheme. However, there are still niggling problems, such as getting additional land. This matter was approved at the Council of Agriculture Ministers and then sent to the services of the Commission where I thought it would be dealt with fairly quickly. We often complain that our Civil Service takes a long time to do anything, but bureaucracy in Europe is excruciatingly slow.
The payment will be backdated to 1 January but that is of cold comfort to people who are on a retirement pension. I want it paid as quickly as possible. The information available to me is that the Commission will make a decision before the end of the month and then the payment will be made straight away. At least it will be a nice Christmas box for people this year.
It will be paid in time for Santa.
They are the only pensioners I have met to take a reduction in their pensions.
I ask the Deputy to put a question to the Minister.
The matter is not as simple as the Minister outlined. Is it true that until last June the Minister and the Department thought the Exchequer would have to fund it and that he realised only then that Brussels might do it and that is why it has taken so long? Pensioners are angry because five or six months have been wasted. Can the Minister assure the House that every pensioner will get their back payment by Christmas?
They will get their back payments by Christmas. I would have preferred if this matter had been sorted out long ago. This is a new scheme which has been successful. Up to 10,000 farmers are availing of it and it will cost approximately £75 million per annum. It is the first retirement scheme to work in Ireland because it applies to inter-family transfers. We want the management of farms transferred to younger people and we want to keep the scheme in operation. I would be pleased if improvements to the scheme were more attractive under Agenda 2000 and if more young people managed farms. That is how we want to drive the agriculture and food industries in Ireland.
May I ask a question?
I am sorry, Deputy Sheehan, but the six minutes have concluded.
Does the Deputy remember the shilling being taken off the old age pensioners? He must have read about it.
The Minister of State should be careful. We have drawn blood already today and we might go for more.
